Final answer:
Esther should use Management by Objectives (MBO) to motivate her employees by allowing them to see how their individual performance directly correlates with the firm's performance. MBO focuses on setting and reviewing clear, measurable goals that align with the company’s strategic objectives.
Step-by-step explanation:
To effectively motivate her employees by showing them how their performance impacts the overall firm performance, Esther should use Management by Objectives (MBO). This approach emphasizes setting specific measurable goals with each employee and then periodically reviewing the progress made.
Management by Objectives is a process where goals are defined so that they are verifiable and can be used to measure an employee's performance relative to the overall success of the company. This system involves mutual decision making and goal setting between management and employees, with regular reviews and appraisals to monitor progress. By setting clear objectives in collaboration between the employer and employee, MBO helps align individual performances with the company's strategic objectives, ensuring a direct link between an employee's efforts and the firm's success.
Meanwhile, a balanced scorecard approach provides an overview of the organization's performance from various perspectives but doesn't directly tie individual performance to organizational goals. The 360-degree evaluation collects feedback from multiple sources which can provide a broad perspective on performance but may not show the employee how their performance impacts the firm directly.
A customer-oriented approach focuses on feedback from customers, which can inform an employee about the impact of their service but may not relate to the overall firm's performance.